You should read about the 9/11ATSSSA. The government literally did pick and choose.

OMB Director Mitch Wilson created rules that benefitted “carriers whose survival was crucial to preserving the national aviation system” and some airlines like Spirit actually had their loan applications denied by the ATSB.
Other airlines like Frontier had terms set that actually made the government money over the following years. Meanwhile US Airways got $900 million and discharged it via BK and merger.

Additionally, the separate direct aid package was not equitable, the $5 billion earmarked for “direct aid” was available under two models. The direct losses for the four-day ground stop, or a compensation package based on August ASMs. Legacy Airlines were largely flying half-empty planes around, even before 9/11, and the August ASM model greatly benefitted low-yield carriers and punished the high-yield LCCs. The government literally gave the Legacy carriers extra money for seats that nobody was buying anyways.